Refurbishments and fit-outs: where value can sit
Refurbishment and fit-out projects are a regular feature of commercial property ownership. They are also one of the more common places for qualifying expenditure to go unidentified.
The nature of fit-out expenditure
A typical fit-out involves a broad range of works: building services, partitions, finishes, lighting, data, furniture and specialist installations. Each element may be treated differently, and the overall position depends on how the works are analysed and documented.
Information is everything
The quality of the review is only as good as the information behind it. Contract sums, valuations, variations and final accounts all help build an accurate picture. Where cost information is limited, a considered methodology is needed, but the outcome is generally stronger when records are complete.
- Keep cost information organised as the project progresses
- Ask the contractor for a suitably detailed final account
- Retain drawings, specifications and schedules
- Involve a specialist before the project closes out
A proportionate approach
Not every project justifies a detailed exercise. Part of good advice is being clear about when a review is worthwhile and when it is not. We aim to give that view early, so that time and cost are spent where they add value.
